Figure A1. Federal Register Activity Across Topics

Panel A: Distribution across top10 topics, all types of documents

Panel B: Distribution across top10 topics, rules only

Panel C: Distribution across top10 topics, notices only

Figure A4: Scatter bin plots of main outcome variables, as a function of regulatory fragmentation

Figure A5: Robustness to excluding outliers

SGA_AT

TFP

ROA

Growth

Growth/at

emp_at

Table A1: Validation using costs of compliance

name

cor_regul.frag

cor_topic.frag

cor_regul.quant

RegIn_Regulations

-0.32

-0.05

0.52

RegIn_Responses

-0.37

-0.03

0.47

RegIn_Time

-0.34

-0.01

0.44

regd_words

-0.19

-0.06

0.30

regd_restrictions

-0.29

-0.07

0.25

regd_restrictions_share

-0.14

-0.05

0.36

Table A2: Validation exercise within finance industry

company_FR.frag_norm

agencies_10K.frag_norm

Regulation Dispersion

0.016

0.112***

(0.015)

(0.015)

Topic Dispersion

0.090***

-0.033

(0.013)

(0.044)

Regulation Complexity

0.004

-0.115

(0.029)

(0.092)

Log(Word,10K)

0.036***

0.189***

(0.002)

(0.019)

Nsegments

-0.024**

0.009

(0.007)

(0.026)

PPE/AT

-0.128**

-0.036

(0.030)

(0.025)

EBITDA/AT

0.175**

-0.039

(0.055)

(0.041)

Log(Sale)

0.023

0.107**

(0.088)

(0.024)

Tobin's Q

-0.037

-0.007

(0.050)

(0.005)

Num.Obs.

2758

9688

R2

0.806

0.810

R2 Adj.

0.772

0.780

Std.Errors

by: FF48

by: FF48

FE: FF48

X

X

FE: FF48_year

X

X

FE: cik

X

X

Table A3: Effects of Regulation quantity in alternative specifications

Panel A: Omitting control variable for the length of 10K

sga

tfp

roa

growth

growth_at

emp

Regulation Dispersion

0.054***

-0.034*

-0.059***

-0.107***

-0.135***

0.011*

(0.014)

(0.018)

(0.016)

(0.022)

(0.026)

(0.006)

Topic Dispersion

0.049**

-0.035*

0.019

-0.011

0.011

0.008

(0.019)

(0.018)

(0.015)

(0.019)

(0.022)

(0.011)

Regulation Complexity

0.023

-0.013

-0.063***

-0.102***

-0.126***

-0.002

(0.020)

(0.023)

(0.020)

(0.029)

(0.026)

(0.014)

Nsegments

0.003

0.000

-0.011**

-0.001

-0.007

-0.003

(0.004)

(0.005)

(0.004)

(0.005)

(0.006)

(0.003)

PPE/AT

0.069**

-0.253***

-0.073***

-0.070**

-0.196***

0.073***

(0.031)

(0.037)

(0.025)

(0.032)

(0.053)

(0.021)

EBITDA/AT

-0.022**

0.387***

0.344***

-0.013

0.043***

0.024***

(0.010)

(0.026)

(0.032)

(0.029)

(0.015)

(0.007)

Log(Sale)

-0.320***

0.358***

0.309***

0.595***

0.503***

-0.036

(0.051)

(0.040)

(0.034)

(0.054)

(0.046)

(0.025)

Tobin's Q

0.111***

0.209***

-0.053***

0.043***

-0.050***

0.031***

(0.008)

(0.020)

(0.009)

(0.010)

(0.012)

(0.006)

Num.Obs.

60534

38922

60534

60534

60534

60534

R2

0.872

0.730

0.651

0.399

0.304

0.923

R2 Adj.

0.850

0.679

0.591

0.295

0.184

0.910

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel B: Large firms, omitting control variable for the length of 10K

sga

tfp

roa

growth

growth_at

emp

Regulation Dispersion

0.035***

-0.017

-0.044***

-0.065*

-0.074**

0.004

(0.012)

(0.019)

(0.013)

(0.032)

(0.034)

(0.007)

Topic Dispersion

0.019

-0.022

0.003

0.009

0.015

0.001

(0.012)

(0.022)

(0.010)

(0.022)

(0.019)

(0.010)

Regulation Complexity

-0.012

-0.013

-0.035**

-0.018

-0.009

-0.009

(0.015)

(0.027)

(0.014)

(0.037)

(0.031)

(0.015)

Nsegments

0.001

-0.001

-0.006**

0.006

-0.003

-0.002

(0.002)

(0.004)

(0.003)

(0.006)

(0.007)

(0.002)

PPE/AT

0.070**

-0.268***

-0.045

-0.097**

-0.232***

0.061**

(0.033)

(0.065)

(0.039)

(0.044)

(0.054)

(0.027)

EBITDA/AT

0.036*

0.433***

0.280***

0.078

-0.023

0.026**

(0.019)

(0.059)

(0.071)

(0.051)

(0.042)

(0.012)

Log(Sale)

-0.110***

0.266***

0.109**

0.469***

0.391***

-0.024

(0.035)

(0.056)

(0.042)

(0.073)

(0.085)

(0.025)

Tobin's Q

0.063***

0.174***

0.030**

0.054**

-0.022

0.027**

(0.008)

(0.029)

(0.014)

(0.026)

(0.024)

(0.011)

Num.Obs.

30267

19411

30267

30267

30267

30267

R2

0.928

0.740

0.516

0.449

0.352

0.950

R2 Adj.

0.914

0.684

0.423

0.344

0.228

0.940

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel C: Small firms, omitting control variable for the length of 10K

sga

tfp

roa

growth

growth_at

emp

Regulation Dispersion

0.059***

-0.020

-0.078***

-0.133***

-0.175***

0.018*

(0.019)

(0.031)

(0.028)

(0.024)

(0.025)

(0.010)

Topic Dispersion

0.049**

-0.045

0.053*

-0.056

0.001

0.011

(0.024)

(0.030)

(0.031)

(0.042)

(0.039)

(0.021)

Regulation Complexity

0.085***

-0.038

-0.102***

-0.199***

-0.221***

0.000

(0.029)

(0.040)

(0.036)

(0.063)

(0.041)

(0.023)

Nsegments

0.007

0.004

-0.016*

-0.022**

-0.019*

0.000

(0.009)

(0.012)

(0.008)

(0.009)

(0.011)

(0.010)

PPE/AT

0.043

-0.243***

-0.091***

-0.074**

-0.184***

0.073**

(0.039)

(0.031)

(0.028)

(0.031)

(0.053)

(0.027)

EBITDA/AT

-0.026**

0.347***

0.313***

-0.066*

0.038**

0.018**

(0.010)

(0.030)

(0.028)

(0.036)

(0.016)

(0.007)

Log(Sale)

-0.413***

0.326***

0.538***

0.952***

0.675***

-0.016

(0.054)

(0.049)

(0.054)

(0.101)

(0.095)

(0.027)

Tobin's Q

0.119***

0.254***

-0.072***

0.030*

-0.062***

0.032***

(0.013)

(0.027)

(0.014)

(0.015)

(0.015)

(0.006)

Num.Obs.

30267

19511

30267

30267

30267

30267

R2

0.843

0.702

0.671

0.440

0.359

0.922

R2 Adj.

0.800

0.609

0.581

0.287

0.184

0.901

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel D: Employing Kalmenovitz (2023) measures of regulation quantity, with large firm interaction

To maintain consistency with Kalmenovitz (2023) this table was estimated separately in Stata.

Table A4: Relationship between Rules and Notices

(1)

(2)

(3)

(4)

lag1_notice

0.248***

0.138***

0.113***

(0.046)

(0.031)

(0.016)

lag2_notice

0.161***

0.085***

0.102***

(0.028)

(0.023)

(0.017)

lead1_notice

0.234***

0.144***

0.122***

(0.050)

(0.032)

(0.016)

lead2_notice

0.201***

0.138***

0.142***

(0.025)

(0.018)

(0.016)

Num.Obs.

203800

203800

203800

203800

R2

0.830

0.832

0.835

0.898

R2 Adj.

0.830

0.832

0.835

0.895

Std.Errors

by: agency

by: agency

by: agency

by: agency

FE: agency

X

X

X

X

FE: year

X

X

X

FE: TopicNumber

X

X

X

FE: agencyNtime

X

FE: timeNtopic

X

FE: agencyNtopic

X

Table A5: Re-estimating main regressions, defining dependent variables at different points in time

Panel A: Dependent variables measured contemporaneously with control variables

sga

tfp

roa

growth

growth_at

emp

Regulation Dispersion

0.050***

-0.053***

-0.017

-0.111***

-0.107***

0.011*

(0.012)

(0.020)

(0.011)

(0.029)

(0.027)

(0.007)

Topic Dispersion

0.029*

-0.055***

-0.017*

0.006

0.053*

-0.005

(0.015)

(0.018)

(0.010)

(0.021)

(0.031)

(0.011)

Regulation Complexity

0.034

-0.025

0.013

-0.123***

-0.081**

0.014

(0.024)

(0.025)

(0.014)

(0.033)

(0.035)

(0.018)

Log(Word,10K)

-0.021*

-0.011

-0.052***

0.025**

-0.033*

-0.020*

(0.011)

(0.011)

(0.013)

(0.011)

(0.016)

(0.010)

Nsegments

0.000

-0.004

0.002

0.007

0.006

-0.005*

(0.003)

(0.004)

(0.004)

(0.006)

(0.006)

(0.003)

PPE/AT

0.189***

-0.271***

-0.208***

-0.148***

-0.455***

0.133***

(0.049)

(0.053)

(0.024)

(0.052)

(0.069)

(0.028)

EBITDA/AT

-0.245***

0.956***

0.917***

0.227***

0.305***

-0.004

(0.034)

(0.062)

(0.019)

(0.036)

(0.023)

(0.006)

Log(Sale)

-0.070*

0.487***

-0.139***

0.522***

-0.092**

-0.014

(0.037)

(0.047)

(0.027)

(0.049)

(0.042)

(0.022)

Tobin's Q

0.140***

-0.004

-0.045***

0.073***

-0.022**

0.035***

(0.010)

(0.019)

(0.010)

(0.012)

(0.009)

(0.005)

Num.Obs.

60305

39559

60534

60534

60534

60380

R2

0.893

0.811

0.829

0.373

0.301

0.925

R2 Adj.

0.875

0.775

0.800

0.265

0.180

0.912

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel B: Dependent variables measured at time t+2

sga

tfp

roa

growth

growth_at

emp

Regulation Dispersion

0.021*

-0.018

-0.004**

0.004

-0.024

-0.008

(0.011)

(0.016)

(0.002)

(0.012)

(0.027)

(0.010)

Topic Dispersion

0.033**

-0.044**

0.032

-0.003

-0.012

0.007

(0.016)

(0.021)

(0.036)

(0.010)

(0.013)

(0.010)

Regulation Complexity

-0.006

0.015

-0.002

0.015

-0.003

0.018

(0.019)

(0.023)

(0.010)

(0.011)

(0.004)

(0.020)

Log(Word,10K)

-0.012

-0.021

-0.006

-0.005

-0.007

-0.025

(0.011)

(0.015)

(0.007)

(0.005)

(0.008)

(0.019)

Nsegments

-0.001

-0.002

0.003

0.000

-0.005

0.003

(0.003)

(0.006)

(0.002)

(0.001)

(0.006)

(0.005)

PPE/AT

-0.001

-0.156***

0.010

-0.020

0.001

0.029*

(0.018)

(0.024)

(0.006)

(0.016)

(0.001)

(0.016)

EBITDA/AT

0.069***

0.150***

0.016**

0.003

-0.002

0.022**

(0.021)

(0.023)

(0.006)

(0.007)

(0.003)

(0.011)

Log(Sale)

-0.325***

0.196***

0.024

0.021*

0.001

0.001

(0.056)

(0.039)

(0.028)

(0.011)

(0.001)

(0.028)

Tobin's Q

0.080***

0.231***

-0.005

-0.003

0.000

0.011***

(0.009)

(0.023)

(0.007)

(0.002)

(0.001)

(0.004)

Num.Obs.

59804

35283

60233

57237

57372

59774

R2

0.807

0.706

0.480

0.309

0.355

0.800

R2 Adj.

0.773

0.650

0.390

0.191

0.244

0.765

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel C: Dependent variables measured at time t+3

sga

tfp

roa

growth

growth_at

emp

Regulation Dispersion

0.008

-0.010

0.002

0.004

-0.007

-0.006

(0.011)

(0.015)

(0.004)

(0.005)

(0.008)

(0.007)

Topic Dispersion

0.028*

-0.019

0.033

-0.001

-0.004

-0.006

(0.016)

(0.020)

(0.035)

(0.005)

(0.005)

(0.010)

Regulation Complexity

-0.034

0.046

0.004

0.014

-0.009

0.020

(0.021)

(0.032)

(0.011)

(0.011)

(0.010)

(0.020)

Log(Word,10K)

-0.007

-0.024

-0.004

-0.002

0.004

-0.027

(0.012)

(0.017)

(0.008)

(0.005)

(0.004)

(0.019)

Nsegments

-0.001

0.004

0.004

0.000

0.008

0.004

(0.003)

(0.004)

(0.004)

(0.001)

(0.009)

(0.004)

PPE/AT

-0.016

-0.082***

0.011

0.010

-0.001

0.014

(0.019)

(0.017)

(0.008)

(0.011)

(0.002)

(0.010)

EBITDA/AT

0.084***

0.086***

0.008

-0.005

0.005

0.016**

(0.023)

(0.012)

(0.009)

(0.004)

(0.005)

(0.007)

Log(Sale)

-0.310***

0.022

-0.001

0.026*

-0.009

0.001

(0.057)

(0.044)

(0.045)

(0.014)

(0.010)

(0.024)

Tobin's Q

0.051***

0.144***

-0.002

0.012

0.001

0.009***

(0.006)

(0.009)

(0.006)

(0.013)

(0.001)

(0.003)

Num.Obs.

56412

31651

57171

54206

54376

56461

R2

0.799

0.693

0.445

0.531

0.517

0.736

R2 Adj.

0.764

0.634

0.350

0.451

0.434

0.690

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Table A6: The flow versus stock of regulation

sga

tfp

roa

growth

growth_at

emp

regul.disp_rolling10_norm

0.045***

-0.028

-0.065***

-0.049**

-0.084***

0.003

(0.013)

(0.020)

(0.013)

(0.022)

(0.028)

(0.008)

Num.Obs.

42241

26550

42241

42241

42241

42241

R2

0.893

0.766

0.683

0.409

0.303

0.943

R2 Adj.

0.874

0.720

0.627

0.305

0.181

0.933

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Table A7: Robustness of findings to firms without big operational changes

SGA|ind

SGA|seg

SGA|size

TFP|ind

TFP|seg

TFP|size

Grwoth|ind

Growth|seg

Growth|size

regul.disp_norm

0.042***

0.043***

0.047***

-0.036**

-0.035**

-0.034**

-0.099***

-0.099***

-0.110***

(0.015)

(0.016)

(0.015)

(0.016)

(0.016)

(0.017)

(0.017)

(0.017)

(0.017)

index

0.011

0.007

0.045***

-0.002

-0.007

0.084***

0.000

0.010

0.079***

(0.007)

(0.006)

(0.007)

(0.011)

(0.012)

(0.013)

(0.012)

(0.018)

(0.014)

regul.disp_norm × index

0.007

0.005

-0.009

0.001

-0.004

0.001

0.006

0.011

0.046**

(0.007)

(0.013)

(0.007)

(0.017)

(0.012)

(0.010)

(0.018)

(0.025)

(0.022)

Num.Obs.

60534

60534

60534

38922

38922

38922

60534

60534

60534

R2

0.867

0.867

0.868

0.719

0.719

0.720

0.363

0.363

0.364

R2 Adj.

0.848

0.848

0.848

0.676

0.676

0.678

0.270

0.270

0.271

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

X

X

X

FE: year

X

X

X

X

X

X

X

X

X

Table A9: Comparing specifications with different sets of controls and fixed effects

Panel A: Excluding company and industry × year fixed effects

sga

tfp

roa

growth

growth_at

emp

Regulation Dispersion

0.078**

-0.003

-0.045***

-0.025**

-0.014

0.069*

(0.031)

(0.017)

(0.009)

(0.010)

(0.010)

(0.036)

Topic Dispersion

0.453***

-0.088***

-0.099***

0.040***

0.029**

0.186***

(0.031)

(0.032)

(0.012)

(0.015)

(0.013)

(0.030)

Regulation Complexity

0.042

-0.057***

0.042***

-0.100***

-0.075***

0.031

(0.030)

(0.010)

(0.010)

(0.010)

(0.007)

(0.021)

Log(Word,10K)

-0.041

0.030*

-0.103***

0.068***

0.045***

-0.165***

(0.042)

(0.016)

(0.014)

(0.015)

(0.012)

(0.047)

Nsegments

-0.047*

-0.020**

0.006**

-0.024***

-0.027***

-0.022

(0.024)

(0.009)

(0.003)

(0.005)

(0.005)

(0.021)

PPE/AT

-0.210***

-0.096

-0.054***

0.019

-0.028

0.086

(0.042)

(0.058)

(0.010)

(0.031)

(0.032)

(0.121)

EBITDA/AT

-0.169***

0.597***

0.639***

-0.067***

0.034**

0.095***

(0.026)

(0.042)

(0.027)

(0.023)

(0.013)

(0.026)

Log(Sale)

-0.096*

0.350***

0.084***

-0.019

0.007

-0.018

(0.052)

(0.029)

(0.019)

(0.013)

(0.013)

(0.032)

Tobin's Q

0.200***

0.171***

-0.082***

0.081***

0.021**

-0.025

(0.021)

(0.024)

(0.015)

(0.012)

(0.010)

(0.016)

(Intercept)

0.000

-0.200***

0.000

0.000

0.000

0.000

(0.077)

(0.027)

(0.014)

(0.020)

(0.017)

(0.085)

Num.Obs.

60534

38922

60534

60534

60534

60534

R2

0.324

0.362

0.475

0.028

0.008

0.104

R2 Adj.

0.324

0.362

0.475

0.027

0.008

0.104

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

Panel B: Excluding other control variables

sga

tfp

roa

growth

growth_at

emp

Regulation Dispersion

0.045***

-0.045**

-0.052***

-0.098***

-0.126***

0.011*

(0.012)

(0.019)

(0.017)

(0.020)

(0.024)

(0.006)

Topic Dispersion

0.048**

-0.062**

0.016

-0.010

0.009

0.010

(0.022)

(0.026)

(0.014)

(0.018)

(0.017)

(0.011)

Regulation Complexity

0.016

-0.040

-0.064***

-0.100***

-0.121***

-0.004

(0.018)

(0.031)

(0.021)

(0.028)

(0.024)

(0.014)

Num.Obs.

60534

38922

60534

60534

60534

60534

R2

0.861

0.675

0.608

0.385

0.288

0.922

R2 Adj.

0.837

0.614

0.541

0.279

0.166

0.909

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel C: Oster Tests of the estimated effect of Fragmentation after accounting for unobservables

This table was produced in Stata

Table A10: Recalculating regulatory fragmentation, using alternative approaches

Panel A: Using MD&A section (Section 7) of 10-Ks

sga

tfp

roa

growth

growth_at

emp

regul.disp_item7_norm

0.039***

-0.021**

-0.044***

-0.006

-0.047***

0.018**

(0.010)

(0.010)

(0.009)

(0.011)

(0.013)

(0.008)

Num.Obs.

57275

36934

57275

57275

57275

57275

R2

0.873

0.732

0.655

0.403

0.310

0.923

R2 Adj.

0.850

0.679

0.593

0.296

0.186

0.909

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel B: Using most intensive topic within each firm’s 10-Ks

sga

tfp

roa

growth

growth_at

emp

regul.disp_main_norm

0.015***

0.002

-0.032***

-0.035***

-0.047***

0.000

(0.004)

(0.007)

(0.003)

(0.006)

(0.008)

(0.004)

Num.Obs.

60534

38922

60534

60534

60534

60534

R2

0.872

0.730

0.653

0.399

0.304

0.923

R2 Adj.

0.850

0.679

0.593

0.295

0.184

0.910

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel C: Dropping the topics that are most intensive across all firms

sga

tfp

roa

growth

growth_at

emp

regul.disp_no3_norm

0.030**

-0.036**

0.004

-0.070***

-0.083***

0.011

(0.012)

(0.017)

(0.016)

(0.021)

(0.025)

(0.006)

Num.Obs.

60534

38922

60534

60534

60534

60534

R2

0.872

0.730

0.653

0.399

0.305

0.923

R2 Adj.

0.850

0.679

0.594

0.296

0.185

0.910

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel D: Restricting sample to firms that have been publicly traded for ten years or less

sga

tfp

roa

growth

growth_at

emp

Regulation Dispersion

0.069**

-0.034

-0.122***

-0.128**

-0.160**

0.023

(0.026)

(0.043)

(0.044)

(0.050)

(0.063)

(0.015)

Topic Dispersion

0.046

-0.045

-0.006

-0.083

0.010

0.010

(0.031)

(0.064)

(0.040)

(0.061)

(0.047)

(0.020)

Regulation Complexity

0.074

-0.004

-0.103

-0.232***

-0.296***

-0.009

(0.050)

(0.072)

(0.070)

(0.064)

(0.101)

(0.025)

Log(Word,10K)

-0.011

-0.032

-0.225***

-0.007

0.072

-0.012

(0.027)

(0.039)

(0.067)

(0.054)

(0.044)

(0.011)

Nsegments

0.000

-0.006

-0.024*

-0.041**

-0.051*

-0.013*

(0.006)

(0.014)

(0.014)

(0.019)

(0.026)

(0.007)

PPE/AT

0.055

-0.252***

-0.175**

-0.052

-0.270**

0.050

(0.037)

(0.062)

(0.081)

(0.056)

(0.118)

(0.033)

EBITDA/AT

0.050***

0.277***

0.146***

-0.103***

-0.037

0.025***

(0.017)

(0.035)

(0.028)

(0.035)

(0.028)

(0.008)

Log(Sale)

-0.396***

0.397***

0.591***

1.323***

1.135***

0.007

(0.086)

(0.090)

(0.075)

(0.150)

(0.175)

(0.042)

Tobin's Q

0.104***

0.205***

-0.088***

-0.005

-0.130***

0.028***

(0.010)

(0.026)

(0.019)

(0.034)

(0.023)

(0.006)

Num.Obs.

20893

12597

20893

20893

20893

20893

R2

0.908

0.794

0.724

0.534

0.462

0.954

R2 Adj.

0.866

0.685

0.600

0.325

0.220

0.933

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel E: Excluding firms in stagnating industries

sga

tfp

roa

growth

growth_at

emp

Regulation Dispersion

0.065***

-0.023

-0.058***

-0.097***

-0.146***

0.019*

(0.022)

(0.025)

(0.019)

(0.035)

(0.041)

(0.010)

Topic Dispersion

0.029*

-0.083***

-0.018

-0.012

0.029

0.000

(0.016)

(0.029)

(0.027)

(0.021)

(0.034)

(0.007)

Regulation Complexity

0.028

-0.018

0.030

-0.134**

-0.179***

0.016

(0.034)

(0.031)

(0.032)

(0.059)

(0.057)

(0.014)

Log(Word,10K)

-0.003

-0.052***

-0.143**

0.052*

0.073**

-0.011

(0.014)

(0.018)

(0.056)

(0.028)

(0.027)

(0.009)

Nsegments

0.000

0.000

-0.012

-0.007

-0.005

-0.006

(0.006)

(0.007)

(0.007)

(0.007)

(0.007)

(0.003)

PPE/AT

0.082

-0.277***

-0.079

-0.043

-0.230**

0.059**

(0.056)

(0.060)

(0.048)

(0.065)

(0.087)

(0.022)

EBITDA/AT

-0.010

0.381***

0.290***

-0.024

0.033

0.016**

(0.010)

(0.036)

(0.040)

(0.034)

(0.020)

(0.007)

Log(Sale)

-0.353***

0.423***

0.413***

0.703***

0.509***

-0.022

(0.072)

(0.072)

(0.060)

(0.089)

(0.061)

(0.015)

Tobin's Q

0.104***

0.210***

-0.044***

0.044***

-0.064***

0.023***

(0.009)

(0.021)

(0.011)

(0.013)

(0.016)

(0.004)

Num.Obs.

30765

18644

30765

30765

30765

30765

R2

0.886

0.766

0.684

0.487

0.383

0.941

R2 Adj.

0.852

0.685

0.591

0.336

0.203

0.924

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Table A11: Recalculating regulatory fragmentation, based on alternative numbers of topic groups

Panel A, 57 topics

sga

tfp

roa

growth

growth_at

emp

regul.disp_57_norm

0.048***

-0.027

-0.039**

-0.093***

-0.096***

0.023**

(0.013)

(0.019)

(0.018)

(0.025)

(0.024)

(0.009)

Num.Obs.

60534

38922

60534

60534

60534

60534

R2

0.872

0.730

0.653

0.399

0.304

0.923

R2 Adj.

0.850

0.679

0.593

0.295

0.184

0.910

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel B, 70 topics

sga

tfp

roa

growth

growth_at

emp

regul.disp_70_norm

0.059***

-0.030*

-0.049***

-0.117***

-0.148***

0.022***

(0.013)

(0.015)

(0.014)

(0.021)

(0.024)

(0.008)

Num.Obs.

60534

38922

60534

60534

60534

60534

R2

0.872

0.730

0.653

0.399

0.305

0.923

R2 Adj.

0.850

0.679

0.593

0.296

0.185

0.910

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel C, 200 topics

sga

tfp

roa

growth

growth_at

emp

regul.disp_200_norm

0.053***

-0.014

-0.084***

-0.048**

-0.046**

0.015**

(0.011)

(0.016)

(0.013)

(0.018)

(0.020)

(0.007)

Num.Obs.

60534

38922

60534

60534

60534

60534

R2

0.872

0.730

0.654

0.398

0.303

0.923

R2 Adj.

0.850

0.679

0.594

0.295

0.183

0.910

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel D, 300 topics

sga

tfp

roa

growth

growth_at

emp

regul.disp_300_norm

0.044***

-0.013

-0.082***

-0.038**

-0.059***

-0.004

(0.010)

(0.013)

(0.016)

(0.015)

(0.017)

(0.009)

Num.Obs.

60534

38922

60534

60534

60534

60534

R2

0.872

0.730

0.653

0.398

0.304

0.923

R2 Adj.

0.850

0.678

0.593

0.295

0.184

0.910

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X

Panel E, 1000 topics

sga

tfp

roa

growth

growth_at

emp

regul.disp_1000_norm

0.032***

-0.002

-0.060***

-0.024*

-0.017

-0.001

(0.009)

(0.009)

(0.013)

(0.013)

(0.014)

(0.006)

Num.Obs.

60534

38922

60534

60534

60534

60534

R2

0.872

0.730

0.653

0.398

0.303

0.923

R2 Adj.

0.850

0.679

0.594

0.294

0.183

0.910

Std.Errors

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

by: FF48

FE: FF48

X

X

X

X

X

X

FE: FF48_year

X

X

X

X

X

X

FE: cik

X

X

X

X

X

X